News

Rave Q2 results show Pie Five, Pizza Inn struggles

February 8, 2017

With a new CEO in place now in the form of former Smashburger CEO Scott Crane, Rave Restaurant Group today reported its relatively downbeat Q2 2017 financial results for the period ending in 2016 on Dec. 25, according to a news release. 

The results indicated problems for both Pie Five and the older, more traditional Pizza Inn brand. Pie Five comparable store retails sales dropped 17.4 percent year over year, while Pizza Inn domestic comparable store retail sales fell just 1.2 percent year over year, though total domestic retail sales grew 0.4 percent. 

For the company overall, total consolidated revenue dropped 3.4 percent to $14.8 million, compared to Q2 2016 result of $15.3 million. And for shareholders, the loss was set at $0.74 on a fully diluted basis for Q2 2017 which compares to a loss of $0.45 per share for Q2 2016. 

Other second quarter highlights include: 
•    Pie Five system-wide retail sales increased 9.7 percent, while average weekly sales declined 14.7 percent, year over year.
•    Net loss of $7.9 million was $3.1 million greater than the same quarter of the prior year, primarily due to increased impairments and other lease charges, and losses from the sale of assets.
•    Adjusted EBITDA of ($1.2) million was $1.2 million less than the same quarter of the prior year.
•    Company-owned Pie Five operating cash flow decreased $0.3 million from the same period of the prior year.
•    Net addition of seven Pie Five restaurants during the quarter brought the total Pie Five restaurants open at the end of the quarter to 99.

"We are aggressively exploring bold new strategies that can be deployed to ultimately improve financial performance,"  Crane said in a news release. "Over the next year, we will be addressing under-performing markets while also improving the overall customer experience at all of our restaurants."